Theatre Tax Relief

Theatre Tax Relief is a scheme that was introduced in 2014 and was designed to encourage and support theatrical productions.

Tax Relief For The Theatre Industry

The aim of the scheme is to encourage and support the theatre industry, boosting employment and innovation, and to continue the UK’s proud heritage in producing world-acclaimed creative material.

It can financially assist companies that produce dramatic productions or ballets, for live performance. Theatrical Production Companies will be able to reduce its pre-performance costs by 20%-25%. A unique aspect of the Theatre Tax Relief Scheme is that some businesses that already claim corporation tax exemptions can be eligible for it.

You can make, amend, or withdraw a claim for creative industry tax reliefs up to one year after the company’s filing date. 

The Company

How do I Qualify For Tax Relief?

There are certain criteria that need to be met to ensure that a company is eligible to claim Creative Industry Tax Relief, which are:

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Qualification 1

01

Be actively engaged in planning and decision making.

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Qualification 2

02

It directly negotiates, contracts, and pays for rights, goods, and services.

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Qualification 3

03

A Theatre company constituted as a limited by shares, limited by guarantee, Charitable Incorporated Organization, a Community Interest Company or a Scottish Charitable Incorporated Organization.

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Qualification 4

04

The company falls under the Company Tax regime, and even if they do not file for Company Tax Returns, they can still claim.

What Doesn't Qualify?

  • It has the main purpose to advertise or promote goods and services.
  • It has performances that consist of or include competitions or contests.
  • Use wild animals.
  • Are of a sexual nature.
  • The main objective is to make a relevant recording.
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The Production

How do I Qualify For Tax Relief?

The Production itself will also need to follow criteria:

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Qualification 1

01

A play, opera, musical or another live dramatic piece, where the performers play roles.

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Qualification 2

02

All or most of the performances will be playing to the public, or for educational purposes.

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Qualification 3

03

At least 25% of the Company’s core expenditure is on goods or services provided from within the European Economic Area.

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Qualification 4

04

The production meets the commercial purpose condition.

Touring Production

How do I Qualify For Tax Relief?

For Touring Productions, at the start of the production phase there must be 6 or more separate premises intended, and at least 14 performances in at least 2 separate premises.

What Costs Qualify for Theatre Tax Relief?

The costs that can be claimed range from costume expenditure to actors wages, however, marketing, financing, legal services, storage and ordinary running costs can not be claimed for.

The qualifying expenditure is:

  • Producing the production
  • Running costs
  • Closing the production
  • Examples: Costs of the set, costumes, script, actors wages through the rehearsal phase.
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Making A Claim

How Do I Make A Claim?

To make a claim, you will need to do this through the Company Tax system which means that the claim must be made in a Company Tax Return or an amendment to a Company Tax Return. Contact us now to get a free eligibility check.

To find out more about Green jellyfish’s Creative Industry Tax Relief service for Theatre, to find out more contact us today.